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rantnrave

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Since it's not doing what was intended, it has been extended. "If something doesn't work, we must do more of it and for longer"...

Osborne to extend Funding for Lending Scheme

George Osborne is set to boost lending to small businesses as he faces growing pressure over his austerity policies.

The chancellor is expected to announce an extension to the Bank of England-run Funding for Lending Scheme (FLS) in the coming weeks.

The scheme was launched in August and was due to expire in January 2014.

The move comes amid pressure from the International Monetary Fund (IMF) for Mr Osborne to reconsider the pace of his austerity programme.

It also follows the decision by Fitch Ratings to strip the UK of its triple-A status on Friday, becoming the second of the big three rating agencies to do so.

The extension to the FLS may be announced before the IMF arrives in the UK to begin regular annual consultations with the government next month.

Sluggish growth

The scheme's launch last year was designed to boost lending to small businesses and households by providing banks with cheap loans on the proviso that they pass them on to customers.

The scheme has so far been criticised because Bank of England figures suggest participating banks were lending less money overall in the second half of 2012 than they were in the previous six months.

But it has also been credited with helping lower the cost of mortgages.

Mr Osborne first suggested extending the scheme in his Budget in March, and the Bank of England's Monetary Policy Committee said there may be "merit" in an extension when it met earlier this month.

The government hopes such schemes will help boost growth, which has remained sluggish since the UK first fell into recession during the 2008 financial crisis.

On Thursday, the Office for National Statistics will release its first estimates for how much the economy grew in the first three months of this year.

Many economists expect the economy to have grown, but only by about 0.1%.

'Time to consider'

Although it has yet to start formal discussions with the UK government, there are increasing signs the IMF believes the slow pace of growth means the UK should consider slowing the pace of its spending cuts.

Last week the IMF downgraded its growth forecasts for the UK, and chief economist Olivier Blanchard warned the UK was "playing with fire" and should consider alternatives to its current austerity drive.

IMF chief Christine Lagarde later told the BBC that "now might be the time to consider" adjusting the pace of the austerity programme.

But she stressed the importance of dialogue with the UK government.

IMF officials are due to arrive in the UK next month for annual consultations that allow it to monitor member countries and issue recommendations about economic policy.

Mr Osborne said he would defend his policies, saying: "Britain's got the right plan in terms of dealing with its deficit."

http://www.bbc.co.uk/news/business-22238504

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FLS = QE simples - when was the last bout of QE? most on here believe that QE was bailing out the banks /treasury and achieved very little else

It`s working very well that`s why they are extending it,FLS is doing what it was supposed to do, bail out the banks and treasury ,but that is not what we were told it was for

Watch what they do not listen to what they say

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The extension to the FLS may be announced before the IMF arrives in the UK to begin regular annual consultations with the government next month

That sounds so Dennis Healey, Michael Foot et al in 1976.

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Speculation does not a doubt queller make.

January 2014 is a LONG WAY off.

In any case, if a scheme isnt working, keeping it going isnt going to help.

Thats like saying the fritters re delicious, they are on the menu, but we have no stock so you cant have one, but we are extending the "you cant have one" next week as well.

Edited by Bloo Loo

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Mr Osborne first suggested extending the scheme in his Budget in March, and the Bank of England's Monetary Policy Committee said there may be "merit" in an extension when it met earlier this month

:lol: That doesn't sound very enthusiastic but no doubt they are waiting for some of their own half baked ideas to come to fruition when the new governor arrives.

Edited by billybong

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I personally think that a lot of the problem with lending is actually down to one specific bank that the government stupidly allowed to build up a large position during the crisis.

Y Viva Espana?

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I personally think that a lot of the problem with lending is actually down to one specific bank that the government stupidly allowed to build up a large position during the crisis.

And then stupidly stuck an immovable weight on it when that position started to unwind.

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Y Viva Espana?

Exactly if you exclude them then the figures would look a lot better, FLS seems just to be plugging the hole from that one group's reduced lending.

I also suspect that a lot of their UK problems are actually sorting out mistimed acquisitions that have turned sour (similar to LLoyds and HBOS) when all the questionable lending from the boom times eventually started to go bad.

Edited by koala_bear

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Asked whether his housing subsidies risked inflating a new bubble, the chancellor said: "I don't agree. This is a period of real weakness in the housing market. The risks of a housing bubble are pretty nonexistent."He insisted he was trying to tackle the "abnormally high cost of mortgages and the very high deposits being asked of people".

Because the prices are way too high, Osborne. Have your parents sold one of their homes for £15 million pounds yet?

http://www.dailymail.co.uk/news/article-2187292/Chancellors-parents-splash-new-10m-home--finding-buyer-old-15million-des-res-street.html

Edited by Venger

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also from the guardian re the HelpToBuy '.... the chancellor said: "I don't agree. This is a period of real weakness in the housing market. The risks of a housing bubble are pretty nonexistent." He insisted he was trying to tackle the "abnormally high cost of mortgages and the very high deposits being asked of people".

Weak housing market, no potential bubble, high cost of mortgages, high deposits required ..... this is Osborne's view of reality, and he is the chancellor who is guiding the country out of a financial mess.

http://www.guardian....y?commentpage=1

GDP figures out this week to come in as a real shocker - Osborne resigns, Help To Buy gets given the boot while in the background the London property bubble explodes dramatically.

...just dreaming...

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Whatever's killing the UK economy it manifestly isn't fiscal austerity.

UK-public-debt.gif

I guess austerity is only allowing slightly less than exponential debt increases, rather than actual exponential debt increases. That chart does look exponential, but slows a bit at the end. We need Brown back to find new places to sling another half trillion of debt at.

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Osbourne is correct when he says there is no chance of another property bubble. They are fighting deflation on all fronts now.

Yep....deflation and austerity......how can you have inflation when people have no extra money to spend, they have stuff that will last years and can buy cheaply second-hand and online because of tight competition.....only energy and food the things people need to live will have an effect so they adapt, like trying to grow more, sharing spare land like unused gardens, travelling less thus spending less....can't pay won't pay...you pay if you want to. ;)

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Osbourne is correct when he says there is no chance of another property bubble. They are fighting deflation on all fronts now.

It is quite amazing that politicians of all major parties in all developed nations are doing everything they can to prevent the cost of living falling to a level that people can afford. Students of economic history in a hundred years' time will struggle to believe this actually happened.

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It is quite amazing that politicians of all major parties in all developed nations are doing everything they can to prevent the cost of living falling to a level that people can afford. Students of economic history in a hundred years' time will struggle to believe this actually happened.

The cost of living going up is called 'growth' something to be aimed at, worked for and targeted towards....can't have the cost of living going down, that can never happen. ;)

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Because the prices are way too high, Osborne. Have your parents sold one of their homes for £15 million pounds yet?

http://www.dailymail.co.uk/news/article-2187292/Chancellors-parents-splash-new-10m-home--finding-buyer-old-15million-des-res-street.html

And those "prices" are the result of the Greatest Fraud in all History: Namely....

PREDATORY LIAR LOANS -- [see all below] ---

Which were used by the banksters to artificially &fraudulently pump up house "prices" so that they could "make" even more money...

-----------

Many banks set out to defraud, but the authorities continue to turn a blind eye:

Watch this excellent video:

http://www.ianfraser.org/even-though-many-banks-deliberately-set-out-to-defraud-the-authorities-continue-to-turn-a-blind-eye/

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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